FNCCI President calls for respect, support for private sector

KATHMANDU: Federation of Nepalese Chamber of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has emphasised the need to give the private sector an opportunity to work with respect. Dhakal expressed this view at a programme organised by Nepali Congress in the capital on Friday.

Dhakal stated that the first step for reform is that all political parties should encourage and support entrepreneurs and businesspeople.

He highlighted that no individual, society, or country can become wealthy without building wealth. "While mismanagement can be controlled, the dignity of the entire private sector should be respected rather than degraded," Dhakal asserted and stressed the need for an integrated system for business registration, renewal, and revenue payment.

Dhakal pointed out the necessity of providing loans against project collateral to small entrepreneurs and informed that FNCCI has submitted a study to the government for risk minimisation and operation.

He commented that the National Planning Commission's strategy is not capable of minimising the risk as Nepal graduates to a middle-income developing country in two years. Dhakal mentioned that the private sector is ready to formulate a strategy and recalled that the first report on this was published in 2021.

The FNCCI President noted that the policies adopted for market control over the past two years have created problems in the economy. There is no activity in the market due to low demand, and entrepreneurs are discouraged from investing. He also informed that the FNCCI's Dashain and Tihar festival-targeted survey showed that sales have decreased by 40% compared to last year.

However, Dhakal pointed out that the economy is not hopeless and there is a possibility of improvement. Some indicators can strengthen this improvement. Nepal's first credit rating, released recently, showed BB-, indicating that while the economy is stable now, a small shock could increase the risk.

Dhakal stated that this is a positive message for investors who want to invest in Nepal. He mentioned that a high-level commission has been formed at the initiative of FNCCI for a new phase of economic reform, which now includes the private sector. This will provide more opportunities and respect to the private sector.